Buy Signal in EURUSD 3-11-09
After posting a series of higher lows over the past week, EURUSD closed above a 1-1/2 month bear trend line today to shift the short-term trend higher. The pair managed to hold above the Feb lows last week, after holding above the Oct-Nov ‘08 lows earlier this year, essentially giving us a double bottom on the second leg of a larger double bottom, which points to a potential short-covering rally. Long-term bears may be inclined to re-set shorts up around the 133 level, or on a close below the Oct ‘08 low.
EURUSD closed above last week’s high today which also supports the buy signal on the daily chart. A bearish seasonal for the U.S. Dollar lies just ahead in late March and early April.
http://www.linkedin.com/in/jjnorris
DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.